ok I certainly would be pleased if you were correct however, I don't see the connection. Saudi King dies, commodities go up?
retiring ANYTHING below par is a huge win at this point. This is a psychological statement "Debt will not stop us". Lets see if anyone gets the message.
Points for arnold. $30 million open market purchases seems significant to me.
I'm a little unclear on those volumes for gas production in 2015. The last presentation said hedging volume was 35,463,340 and that the hedge represented 96%. That would put total volume around 37ish. Are you assuming some growth there or am I missing something?
Lets say I own a company that uses a lot of oil or gas. I make plastic stuff, or chemicals, fertilizer, shipping or whatever. I buy a lot of oil. I don't know what the price of oil will be 3 years from now. Maybe its up, maybe its down. But I don't want to worry about it. I want to contract with someone to give me X amount of oil at my price for the next several years to come. Now it just so happens that someone like MEMP also wants to SELL their oil at price X for the next several years. Now all that has to happen is that the buyer and the seller need to hook up and make a deal. There is a market for that and its what hedging is all about.
Sure there are big financial players who go in buying and selling as part of the market, and yes they could get hurt if on the wrong side. But there are also a lot of producers and users in the market who are just pre-selling or pre-buying what they need for business.
If they buy 10% of the volume every day (not probable) it would take 62 days to buy the full allotment. 150 million is a LOT of shares compared to the average volume. By itself, retiring those shares is enough to increase distributions nearly 30 cents/unit. Or fix any coverage shortfall quite nicely.
Down over 6%. Even more than LINE and BBEP. I'm still sitting on some cash reserves just in case. This is rough.
copper is way down today. this is what deflation looks like. I find it difficult to believe the Fed will proceed with rate hikes in this environment.
Well yes, I agree, but not long ago I was being hit regardless. Now its not. Somebody got smarter. The question is, will that stay the case or is there another MEMP freak-out, in the cards?
Wasn't too long ago oil would drop 5% in a day and this would fall 10% in response. Today, BBEP was hit hard, ARP hit as well but MEMP down less than the drop in oil. Even if oil hits $40, it doesn't act like MEMP will reach its previous low in the 12s. Any thoughts on this?
You can make a virtual machine out of your old DOS box. If you don't know a virtual machine is software that lets you run a simulated PC inside a window. Your old dos box then becomes a file that you can make backups of, or copy to another machine. Fire up the VM window and there your old box is, running happily not even knowing the difference.
Wait...we have hundreds of millions of barrels of empty storage and a massive "oversupply"?
I think if a few other nations get together and decide to cut production that the Saudis will ramp up production as much as they can to fill the gap and keep the hurt on. Seems like they will keep at it until someone breaks. Personally I wouldn't be surprised if they've been releasing stored reserves into the market to keep inventory artificially high. I mean people are buying up oil to put in storage while its cheap, but more keeps coming.
Any option trade can be used to limit risk. We all love MEMP why? because they use hedges well to lower risk. How do you think that works?
If you are long, you can sell calls or buy puts to lock in some gains.
If you are short you can buy calls to limit loss
If you just want to be paid to buy shares at a lower price, sell puts.
Buying naked calls or puts is high risk, but when used properly, using options is called hedging.